County finally ready to name developer for Yaphank project

Three years after asking for proposals, Suffolk County said it’s close to choosing who will build a mixed-use community on 250 county-owned acres in Yaphank.

Deputy County Executive James Morgo said the choice should be made by the end of the month. He also defended the length of the process, calling it “very meticulous,” and, he added, that the ability to finance the ambitious project would be one of the deciding factors in selecting a development team.

But real estate industry experts said financing would be a problem for either of the two developers still in the hunt.

Commercial lender Jonathan Goldman of Jericho-based M. Robert Goldman & Co. said larger projects are feeling the biggest squeeze because it’s difficult to obtain loans for more than $50 million.

Despite the new difficulties in securing affordable financing, both development teams said they have the funding needed to follow through on their plans, but their projects would probably have to be built in phases.

Mitch Pally, an attorney with Melville-based Weber Law Group, which represents a consortium that includes Katter Development, The Hudson Group, Parr Organization and SMG, said the county hasn’t asked his group to do any major alterations to its original proposal.

“Everything we’ve done is to try and answer their questions,” Pally said.

The other developers in the race said they haven’t been asked to make changes either.

Avalon Bay Communities Vice President Matt Whalen, who is partnering with Damianos Realty Group on the competing bid, said government should set timelines on choosing a bid because conditions change.

The Avalon Bay and Damianos project is called the Villages at Carmans River.

Both development groups have proposed to build a 6,000-seat multipurpose indoor arena, retail stores, an industrial park and about 1,000 units of mostly work-force housing just south of exit 67 of the Long Island Expressway.

Morgo suggested that a minor-league hockey franchise would be an ideal fit for the arena, though it would be the developer’s responsibility to lure one there.

Jason Chaimovitch, a spokesman for the American Hockey League, said he wasn’t aware of plans to bring any of the AHL’s 30 teams to Yaphank. But Chaimovitch said there are other leagues, such as the four-team Eastern Professional Hockey League, that have some room for expansion.

Other prospective tenants for the arena include pro lacrosse and pro basketball teams, and local college teams, Morgo said.

Meanwhile, designating a developer for the Yaphank site is only the first step in what could be a long permitting process. The Town of Brookhaven must then rezone the property and give site plan approval before the first shovel breaks the ground.